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Penn Virginia Resource Partners, L.P. Announces Second Quarter 2009 Results.

Article Excerpt
RADNOR, Pa. -- Penn Virginia Resource Partners, L.P. (NYSE:PVR) today reported financial and operational results for the three months ended June 30, 2009 and provided an update of full-year 2009 guidance.

Second Quarter 2009 Highlights

Second quarter 2009 highlights and results, with comparisons to second quarter 2008 results, included the following:

* Distributable cash flow (DCF), a non-GAAP (generally accepted accounting principles) measure, of $34.6 million, as compared to a quarterly record $40.6 million in the prior year quarter;

* Adjusted net income, a non-GAAP measure which excludes the effects of the non-cash change in derivatives fair value, of $17.9 million, or $0.22 per limited partner unit, as compared to a quarterly record $31.2 million, or $0.52 per limited partner unit, in the prior year quarter;

* Net income of $13.3 million, or $0.13 per limited partner unit, as compared to $9.5 million, or $0.08 per limited partner unit;

* Coal production by lessees of 8.7 million tons, as compared to 8.8 million tons;

* Coal royalties revenue, net of coal royalties expense, of $28.4 million, or $3.25 per ton, as compared to $28.2 million, or $3.20 per ton;

* Quarterly natural gas midstream system throughput volumes of 31.3 billion cubic feet (Bcf), or 344 million cubic feet (MMcf) per day, as compared to 23.9 Bcf, or 262 MMcf per day;

* Midstream gross margin, prior to the cash impact of derivatives, of $20.9 million, or $0.67 per Mcf, as compared to a record $32.0 million, or $1.34 per Mcf; and

* Midstream gross margin, adjusted for the cash impact of midstream derivatives, of $24.3 million, or $0.77 per thousand cubic feet (Mcf), as compared to $23.8 million, or $1.00 per Mcf.

Reconciliations of non-GAAP financial measures to GAAP-based measures appear in the financial tables later in this release.

DCF for the second quarter of 2009 of $34.6 million was $5.9 million, or 15 percent lower, than $40.6 million of DCF in the second quarter of 2008 primarily due to:

* a $3.0 million decrease in operating income (before depreciation, depletion and amortization (DD&A) expense) from the coal and natural resource management segment (PVR Coal & Natural Resource Management) primarily due to decreases in oil and gas royalties, timber and other revenue and increased general and administrative (G&A) expense;

* a $3.7 million decrease in operating income (adjusted for the cash impact of midstream derivatives and before DD&A...

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